Question

Taking a practice test and I don't understand how to solve this question

Answer 1

To show the estimated expression for the compounding tuition fee function:

Using the compound interest relation :

`B(x)=P(1+(r)/(n))^(nx)`

Where ;

b = final amount after x years

P = Initial amount = $33,741

r = rate = 2.8% = 0.028

x = number of years since 2015

n = number of compounding times per period = 1 (yearly)

The function b(x) can be written as :

`\begin{gathered} B(x)=\text{\$}33,741(1+(0.028)/(1))^x \\ B(x)=\text{\$}33,741(1.028)^x \end{gathered}`

Therefore, the expression for the function b(x) is :

`B(x)=\text{\$}33,741(1.028)^x`